🔑 Market Overview
The U.S. dollar held steady on Friday, outperforming most major peers, while European equities edged lower as investors wrapped up the final trading sessions of August. With month-end flows at play and the US PCE price index due later, traders largely stayed cautious.
📉 Equities & Bonds
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European stocks finished weaker, extending weekly declines. Both the DAX and CAC 40 have now turned negative for the month, while IBEX and FTSE MIB remain on track for strong monthly gains.
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US futures slipped, with S&P 500 futures down 0.3%, reversing much of Thursday’s recovery. Wall Street could yet change the tone once the cash session opens.
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In bonds, the US 10-year Treasury yield ticked up 1.8 bps to 4.225%, reflecting lingering rate concerns.
🪙 Commodities & Crypto
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Gold eased 0.3% to $3,405.82.
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WTI crude oil fell 0.4% to $64.35.
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Bitcoin dropped 1.6% to $110,106, extending this week’s decline.
💱 FX Market
FX trade was relatively muted, though the dollar gained modestly:
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EUR/USD slipped 0.2% to 1.1660.
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USD/JPY rose 0.2% to 147.20.
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GBP/USD was the notable mover, down 0.4% to 1.3455.
Other major dollar pairs were mostly flat.
📊 Macro Updates
Inflation figures out of Germany, France, Spain, and Italy largely met expectations, reinforcing the current ECB policy outlook without any surprises.
📝 Closing Note
With August winding down, market participants are bracing for the PCE inflation print to guide U.S. monetary policy expectations heading into September. Until then, traders remain cautious as month-end positioning drives the short-term tone.